Market News

Soybeans mixed, corn down, watching harvest

Soybeans were mixed. China bought 132,000 tons of U.S. 2021/22 beans, a day after cancelling a previous purchase of the same amount and reportedly buying beans from Brazil. Unknown destinations also canceled on previously purchased U.S. soybeans Wednesday. Those cancellations were thought to be an indicator of slow movement out of southern Louisiana due to storm damage, while the Thursday U.S. buy and the reported sales to Brazil are probably due to strong demand from China. Last week’s sales were lower than the previous week, but still solid, with China and unknown destinations taking the top slots. Early harvest conditions look good in most key U.S. growing areas. Soybean meal was higher and bean oil was lower, unwinding product spreads. Brazil reportedly purchased 86,130 tons of soybean oil between January and August, the highest for the time period in more than two decades, mostly from Argentina. Planting is ongoing in Argentina and Brazil.

Corn was modestly lower on profit taking and technical selling. Weekly export numbers were bearish, likely due in part to damage in the Gulf caused by Hurricane Ida. Sales were about a third of the prior week’s total, with no significant cancellations. The leading buyers last week were Mexico and unknown destinations. Export operations are reportedly resuming at some key grain terminals, even with the recent heavy rain from Tropical Storm Nicholas. China is showing no interest in U.S. corn as their domestic prices move lower. Corn is watching U.S. harvest activity, with some areas reporting lower than expected yields, but it is still early in the process. The trade is also monitoring the early planting stages in Argentina and Brazil and the potential impact of the anticipated La Nina pattern. Ethanol futures were unchanged. DTN says a South Korean feed mill bought 201,000 tons of optional origin corn.

The wheat complex was mixed, with Chicago mostly weak and Kansas City and Minneapolis up modestly. Weekly export sales were a marketing year high following last week’s purchase by Nigeria. Mexico and South Korea rounded out the top three. DTN says Japan bought 118,711 tons of food wheat from the U.S., Australia, and Canada, and South Korea picked up 65,000 tons of feed wheat “likely” from the Black Sea region, while Taiwan is tendering for 49,580 tons of U.S. milling wheat and Jordan is in the market for 120,000 tons of milling wheat. The trade is monitoring global harvest numbers, with Russia 71% complete, along with development weather in Argentina and Australia, both of which have extensive dry areas. U.S. winter wheat planting is ongoing. The next domestic USDA production estimate is out on the 30^th, along with quarterly grain stocks, and new supply and demand projections are scheduled for October 12^th.